Tax Horror Stories and how to avoid them – Podcast

Trust Trusts

Image courtesy of Stuart Miles at

Image courtesy of Stuart Miles at

Trusts are not only for the wealthy, they are really for anyone who has assets to transfer.  The assets will be transferred privately through the trust without having to go through the very public probate process.  A trust is a separate entity that has a grantor, the person who established the trust, a trustee, the person who will manage the trust and the beneficiary, the person who will benefit from the trust.  In some situations, one person can take on all three roles.

The grantor has the right to tailor the trust to meet the needs of the beneficiaries.  In addition, the grantor has the right to specify how the assets in the trust will be invested.  In order to ensure all assets are included in the trust upon death, the grantor should establish a “pour over” will to ensure all assets that were obtained after the trust was established will “pour over” into the trust.

One really important feature of an irrevocable trust is that it can protect assets from the costs of nursing home care.  This type of trust can ensure your assets are protected and are distributed as you had determined even if you require nursing home care.  Without an irrevocable trust, your assets would be liquidated and used to pay for your care.

As always we urge you to seek a professional, we are simply providing some general information about trusts but this is a very complicated topic so please contact your trusted estate planning attorney as well as a certified public accountant for further discussion.

Please share this post with others who might benefit from it and please comment about your experience with trusts.



The old switcheroo

Swapping for a higher priced property

Image courtesy of Stuart Miles at

Since today is the day after US income taxes are due, now is a good time to remember it is never too early to plan your tax strategy.  If you are investing in real estate you need a good CPA and to be familiar with section 1031 of the IRS code.

We are not tax professionals, so always consult your trusted CPA to provide the nitty gritty of the rules, but this opportunity applies to like kind exchanges of property.  Section 1031 allows you to postpone paying tax on the gain if you sell a property and reinvest the proceeds in a similar, higher priced property.  Remember, it is not tax free but tax deferred.

There are time limits on taking advantage of a 1031 exchange.  First, you must identify potential replacement properties within 45 days from the date you sell the relinquished property.  Second, the replacement property must be received and exchanged within a specified amount of time.

This is a great opportunity for a real estate investor to keep rolling proceeds forward into more expensive properties without immediate tax consequences.  Your net worth will soar!

Have you taken advantage of a 1031 exchange?  If so, please comment your experiences here!


Taxes; The Good, The Bad and The Ugly

Just in case you missed it…A fantastic webinar, Taxes; The Good, The Bad and The Ugly with Kim Landry, CPA from Landry and Associates.  Kim gave us some great tax strategies and planning techniques to be able to keep more of what you make.

What is a tax strategy that has saved you from paying more taxes than necessary?  Please share.

Worth their weight in gold!

Image courtesy of digitalart from

Image courtesy of digitalart from

A CPA can be a very important member of your investing team who can guide you through the labyrinth of taxes.  They are worth their weight in gold to you and your business.  A true CPA professional can ease your stress and save you lots of money you may have given Uncle Sam because you didn’t know any better.  Here are some tips when working with a CPA to make the most of your time and money.

Form a good relationship.  Once you find a good CPA, stick with them.  They become familiar with your business and they will ask important questions to lead you to a lower tax bill.  Of course, telling the truth is very important because it may make your CPA terminate your relationship and will hurt you if you are dishonest.

Lower your annual bill by being organized.  If you hand over a shoe box fill of receipts instead of a categorized report of expenses, your bill will most certainly be much higher.

Use your CPA in making decisions.  Be sure to consult your trusted CPA regarding purchases and don’t make assumptions.  Those assumptions could be very costly.

We are proud tonight to have our trusted accountant and friend Kim Landry, CPA with us tonight for our FREE webinar to go over the topic of taxes.  Don’t miss it!


Please comment on what you learned from the webinar.